These laws are dangerous, both for citizens of countries like China and citizens of Western democracies. Forcing companies to redesign their communications products and services to facilitate government eavesdropping reduces privacy and liberty; that's obvious. But the laws also make us less safe. Communications systems that have no inherent eavesdropping capabilities are more secure than systems with those capabilities built in.
Any surveillance system invites both criminal appropriation and government abuse. Function creep is the most obvious abuse: New police powers, enacted to fight terrorism, are already used in situations of conventional nonterrorist crime. Internet surveillance and control will be no different.
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